Company Number: 13839442

Analysis Date: 2025-07-20 11:02 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   AB PHARMA SERVICES LTD is a micro-entity active for just over two years, with limited financial history and modest scale of operations. The company maintains positive net assets and working capital, indicating an ability to meet short-term liabilities. However, net assets and working capital have declined modestly compared to the prior year, and the company employs only one person, suggesting limited operational scale and potential vulnerability to fluctuations in business activity. The single director has full control, which simplifies accountability but concentrates risk. Credit facilities could be approved with conditions such as ongoing financial monitoring and a requirement for updated management accounts to confirm cash flow stability.

2. Financial Strength
   The company’s balance sheet shows net assets of £8,474 as of 31 January 2024, down from £10,861 the previous year. Current assets increased slightly (£15,778 vs. £14,219), but current liabilities more than doubled (£7,304 vs. £3,358), reducing net current assets from £10,861 to £8,474. The financial structure is very modest but positive, with no indication of long-term liabilities or intangible assets. The micro-entity classification and small scale limit the breadth of financial data, but equity remains positive and the company is not overleveraged.

3. Cash Flow Assessment
   Working capital is positive, indicating the company can cover short-term obligations from current assets. However, the increase in current liabilities outpaces current asset growth, which may signal tightening liquidity. The absence of a profit and loss statement or detailed cash flow statement limits the ability to fully assess operational cash generation. With only one employee and a single director also acting as a locum pharmacist, the company’s cash flow is likely dependent on a small volume of transactions and client concentration. Liquidity should be carefully monitored.

4. Monitoring Points

• Monitor quarterly or biannual management accounts to detect any deterioration in liquidity or increase in liabilities.
• Watch for changes in current liabilities and the ratio of current assets to liabilities to avoid working capital shortfalls.
• Track any changes in business scale or staffing that might impact operational continuity.
• Continued review of director conduct and any changes in ownership or control to avoid governance risks.
• Monitor compliance with filing deadlines and any changes in financial classification or business model.